This weekly view of the SMI indicates resistance, but what wave is it that is at this resistance? It is a new high but it does not appear to be Intermediate (1) due to the muted (~23.6%) retrace of the preceding bull trend. A retrace in closer proximity to [4] (~38.2%) would be far more acceptable.
This is a daily view of the same index. The divergence has a message. In the background is the omnipotence of the Fed and their banking interests (which are jokingly said to be of no importance to them). The fall into
(A) was a revaluation caused by the Fed stance on its desire for rate increases. The reaction since
(A) is a false value restoration caused by the Fed reversing its stance for rate increases. Their banks are doing extremely well with absolutely no risk. POTUS is grumpily unimpressed and may well make something happen to bring meaning to the word "free" in the expression "free markets". The term "the land of the free" has been an increasing joke for long enough already.
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